As for the market, we are stuck in a 60 point range on the S&P cash since we broke 880 on May 3rd. We've tested this level multiple times as both support and resistance and it looks like a solid area of support at this point in time. We tested 880 on the S&P cash as support on May 13th, 14th, 15th, 21st, 22nd, and 25th; We tested 880 as resistance on January 28th, 29th, February 9th, and April 17th. Currently, we are hovering around the 200EMA on the daily chart and haven't been able to successfully close above it without pulling back under it a day later. Also, the stochastics (SMI indicator) on the S&P cash is starting to top out again but we may get a further push up. The current value that I see today for the SMI is 58.75. So, we have some room to push up on the Stochastics until we reach an over bought level. Also, it's interesting to see that we are currently having trouble breaking through the same highs of around 940-945 that we were hitting back at the start of the new year on January 2nd, 5th, and 6th. Then, looking at the S&P Daily, we can see that there is the monthly R1 and R2 pivot just above us at 944 and 969.
Overall, I would say that we have the potential to continue upwards if we can close above the 200EMA and break through the monthly R1 pivot at 944. If we do that, then we'll also see the 20/200 EMA cross over to the upside followed by the 50/200 EMA cross over which will be very bullish. It seems to me that things are in limbo right now, and we are waiting for that big move to happen... will it be good news that pushes us up or will we lose our momentum and pull back down? Personally, I am bullish, but we'll see! You never know how things will go until they've already happened!
In the mean time, I am going to be managing my swing trades, and studying for the Series 7 Exam. That's all for now!
No comments:
Post a Comment